IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 3, June 2012
Employee Motivation and Organizational
Performance in Multinational Companies: A Study of
Cadbury Nigeria Plc
Oluyinka Solomon, Noor Hazarina Hashim
Faculty of Management and Human Resource
Development
Universiti Teknologi Malaysia, 81310 Skudai, Johor
Bahru Malaysia
Abstract--The study of human resource management (HRM)
has been rejuvenated by the assurance that there is a best-
practice, high-involvement management (HIM) that can
guarantee better performance of employees in organizations.
None the less, there remain concerns that contingency theory still
rules, that is, the fit between the human resource systems and
their context, and particularly the organization's management
technique, is all important and, thus, that high-involvement will
only surpass other systems in certain situations. Furthermore,
incentivising organizational employees and job satisfaction have
been acknowledged to be a controversial and widely debated
topic for years now. This assertion is not unconnected to the
discovery that university graduates, job seekers and more to say
organizational managers are no more concerned whether job
duties and scope are fulfilling rather their interest lie more on the
magnitude of incentives attached to their job. Furthermore,
complaints are bound from employees of most companies that
their monthly income is stagnant and there exist discriminatory
wage policy in many of the multinational organizations in
Nigeria. The relationship between effects of employee’s
motivation on organizational performance has elicited a debate
among personnel management professisionals and academic
researchers over the years. This investigation however seeks to
look into the effectiveness of employee motivation for enhanced
organizational performance in multinational companies in
Nigeria, especially the manufacturing sector. A survey of
personnel of Cadbury Nig Plc was undertaken. A total of 100 self
administered questionnaires were distributed while 87 of them
were returned. The data collated and analyzed using simple
percentages and Pearson’s Product Moment Correlation. The
findings show provision of adequate motivation by Cadbury
Nigeria Plc and improvement in employee productivity and, a
positive correlation between employee productivity .Senior
managers are however advised to adapt continuous improvement
in motivational programmes as a core ingredient for enhanced
employee productivity.
Keywords; Motivation; Organizational Performance; Employee;
MNC; Nigeria
1.0 INTRODUCTION.
It has been widely acknowledged that the western economies
are largely driven by the manufacturing industry. In the United
States alone, this sector accounts for more than 75 percent of
Zohreh B.T. Mehdi, Musibau Akintunde Ajagbe
Faculty of Management and Human Resource
Development
Universiti Teknologi Malaysia, 81310 Skudai, Johor
Bahru Malaysia
the gross domestic product [1]. Thus, it follows that research
directed at increasing an understanding of drivers of employee
and organizational performance in this sector is of growing
concern to human resource management scholars and
practitioners [2, 3, 4]. The long held maxim in management
circles that once employees are given enough incentives, they
will produce in large quantities and of good quality has
recently come under heavy criticism. Arguments advanced
have ranged from those who maintain that money is not an
effective means of enhancing increased and adequate
productivity, to those who hold that job security and other
non-financial rewards are much more effective as modes of
incentives in an effort to increase productivity [5].
Organizational managers had for several years been saddled
with the challenge to maximize industrial performance
through either the maximization of human output or by
increasing the potential capability of machines. Previous
efforts in either direction have produced only little results [6].
According to the concerned managers, advances in industrial
engineering through automation and mechanization of
industrial processes were welcomed relief for management,
yet this development sidelined the employees and brought
about greater dissatisfaction. Management problem today
therefore appears very much human than mechanical [7].With
the realization therefore, greater efforts towards increasing
productivity have taken the human approach and hence, the
use of incentives. The use of incentives to spur workers
however, is not known to be recent but has required more
awareness in recent times, while the methodologies adopted
by various company managers of incentives have widened in
the use of money (economic incentive), the provision of
amenities and fringe benefits (social incentives), involvement
of decision making (participatory incentive), to the use of such
factors as job security and promotion (psychological
incentive). Popoola [5] postulated that several theoretical and
empirical attempts have been made at understanding the
connections between reward and productivity. Few studies
have studied the role of financial compensation in industrial
motivation [8, 9], while others have investigated incentives for
their motivational consequence [9]. A relevant and popular
technique has been the Path Goal Approach to Productivity by
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Georgopoulous. Yet others have considered the multi-
dimensionality of the topic. This study is not an effort to
review of such studies; but referencing them will serve to
indicate the worth and importance of the contemporary issues.
Many authors believe that “high involvement” or “high
performance” HR practices positively affect organizational
performance outcomes [10], yet how HR affects outcomes is
not yet fully clear. One important proposed mechanism
suggests that this impact runs via individual employees. For
example, Wright and others stress the crucial role of employee
attitudes and behaviors in translating HR practices into
performance [11, 12]. High performance HR practices are
assumed to enhance employee motivation and performance,
and, in turn, these more motivated and better performing
employees improve firm performance. In line with this more
central role of employees, researchers emphasize the need to
include employee perceptions in human resource research [13,
11].
The organization’s designed human resource approach
preferably reflects its strategy and context, and as
organizations make choices about how to manage their
employees, such approach also communicate information
about the organization to employees. However, having a well-
crafted human resource system in theory may not be enough to
positively affect employees as rhetoric about the ideal human
resource system and the reality of what is implemented may
differ from each other [14]. Den Hartog et al. [15] postulated
that Line managers play an important role in implementing the
designed systems, and differences in implementation might
occur at this level. While Nishii and Wright [11] point out that
besides the intended or designed HR system that firms develop
theoretically, there is the need to differentiate the human
resource system as implemented (what managers put into
practice) as well as the perceived HR system (how employees
interpret practices). Nishii et al. [16] portends that if care is
not taken, there is the likelihood that a disconnect between
intended HR practices as reported by managers and the effect
of actual HR practices would occur, that is, at least partially
explained by differential meanings imposed on those practices
by employees. This disconnect is problematic if the
performance effects of HR practices are argued to come about
as a result of the perceptions of individual employees.
Dyer and Reeves [17] distinguish four types of human
resource outcomes (employee, unit/organizational, financial,
and market). Employee outcomes can be affective (e.g.,
satisfaction) or behavioral (e.g., citizenship). Several authors
have stressed that HR can contribute both to “happy” and
“productive” workplaces [18]. In that scenario, both well-
being and performance-oriented HR outcomes are of interest,
and hence, include job satisfaction and perceived unit
performance [19]. The purpose of the present study was to
contribute to this knowledge base through an empirical
investigation. Specifically, this study examined the effects of
employee motivation on organizational performance.
Specifically, we looked at the effect of feedback from six
departments of a multinational company in the manufacturing
sector in Nigeria. We wanted to see if feedback from this
Vol. 2, No. 3, June 2012
source could be used to enhance the motivation effectiveness
of employees on the performance of organizational personnel
in the manufacturing industry especially the multinationals in
Nigeria. Prior to conducting this study, there was no evidence
to suggest that employee performance and the performance of
the multinationals where they worked would increase or
decrease as a result of this intervention. Thus, we wanted to
ascertain whether motivation of employees of direct reports
based on feedback provided on a seemingly random, albeit
systematic schedule from the selected sample population
affects employee and organizational performance positively.
2.0 UNDERLYING THEORIES OF HUMAN RESOURCE
MANAGEMENT
The necessity of providing employees feedback on their
performance has been supported by at least three human
resource management theories of organizational behavior, and
opined that Feedback is a moderator variable in goal setting
theory [20, 21] because it is important for effectively guiding
goal setting and pursuit. Social cognitive theory emphasizes
the importance of feedback for increasing self-efficacy for the
achievement of organizational goal [21]. The theory also
explains the significance of feedback for allowing employees
to see the connection between what they are doing and the
result they expect to achieve. None of this theory indicates the
frequency with which feedback should be given. The answer is
suggested in Skinner’s [22] theory of reinforcement. Although
the philosophy underlying reinforcement theory namely,
behaviorism [23] has been disapproved for neglecting to
acknowledge cognition as a mediating variable [24], this
failure does not negate the effectiveness of this theoretical
framework for suggesting ways of managing performance
[25]. Voluminous experiments show that when learning a
response, a continuous schedule of reinforcement results in
higher performance than a variable schedule [26]. Once the
response is learned, and reinforcement is subsequently
administered on a fixed interval such as once every minute,
the responses increase rapidly only as the end of the
predetermined time period approaches.
2.1 Employee Perceptions of Human Resource
As noted, individual-level mechanisms are seen as potentially
important in the Human Resource performance relationship.
Individual-level mediators that have been proposed include
perceptions of climate [27], commitment [28]), and skills,
attitudes, and motivation [29]. Thus, one way in which Human
Resource systems are assumed to affect firm performance is
through their impact on employees as the degree to which
employees are motivated to behave in line with organizational
goals is believed to be very important company performance
[30]. In view of this, [11] put forward that planned and
executed Human Resource Management practices affect
results through the manner employees perceive these human
resource practices. Human Resource practices can be viewed
as signals of the organization’s intentions toward employees
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well being [13]. However, these management practices
transmit messages frequently and in unintended ways, and
messages can be understood distinctively, whereby two
employees interpret the same practices differently” [13].
Differences in personal experiences and distinctive
preferences may lead employees to react differently to
practices [13, 15]. Differences in implementation and
communication may also lead to variation in HR perceptions
of individual employees [16]. Because misalignment implies
that employees do not have an accurate perception of HR
policies and practices, the impact of these practices on
employee outcomes is likely to be attenuated.
2.2 Performance Management
Performance management in the multinational manufacturing
industry is typically problematic. Requiring a manager to
thoroughly assess each employee is often not logistically
possible [31]. In the many cases, an employee cannot
consistently be observed interacting with a customer who is
being served. Nonetheless, employees in this new millennium
want relatively immediate performance feedback. Previous
research have shown that this request is justified. A wider and
deeper study carried out in experimental and organizational
psychology throughout the twentieth century have established
that feedback is critical for organizational learning (i.e.,
ability) and the choice to exert effort and persist in attainment
of goal (i.e., motivation) [32, 33]. It is also vital to note that
knowledge of outcomes that are delayed are far less effective
than relatively immediate feedback for facilitating learning
and maintaining effort and persistence. Because performance
appraisals are classically done on a fixed interval basis—that
is, annually—the feedback an employee may need to act upon
to improve performance is not given in a timely manner.
Employee training and development, in addition to
performance appraisals, is viewed by many practitioners [31]
as an important way to develop and motivate employees.Cardy
[34] opined that performance management is a critical aspect
of organizational effectiveness. His views is based on the fact
that performance management is the main process through
which company task is accomplished, it is seen as the
“Achilles Heel” of managing human capital [35] and should
therefore be a major focus of professional managers.
Nonetheless, not more than a third of employees believe that
their company's performance management process assists
them in improving their performance, and performance
management regularly ranks among the lowest topics in
employee satisfaction surveys [35, 31].
2.3 HR bundles and high performance work systems
One of the earliest empirical studies examining human
resource management systems was published by [36, 37]. In
that study a sample of steel minimills operating under two
different HR systems were used (control vs. commitment), the
findings revealed that commitment HR systems in contrast to
control systems, lead to higher productivity, lower scrap rates,
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and reduced turnover. Moreover, another result indicated that
the impact of turnover on manufacturing performance was
moderated by the type of HR system. Arthur’s pioneer work
signified the commencement of a stream of study on HR
systems and the search for “bundles” of HR practices and high
performance work systems (HPWS) that influence
organizational performance. Dyer and Reeves [17] set the
stage for the more integrative perspective on HR systems.
They took stock of the strategic human resource management
literature to date and noted that bundles or configurations of
HR practices may be more important than single activities.
Similarly, in the same year, two of the most significant
strategic human resource management empirical research
investigating HR bundles were published, one by Huselid [10],
and the other by [38]. High performance work systems were
defined as those including comprehensive employee
recruitment and selection procedures, incentive compensation
and performance management systems, and extensive
employee involvement and training. Huselid [10] found that
the relationship between HPWSs and corporate financial
performance was mediated by turnover and productivity.
HPWSs reduce turnover and increase productivity, thus having
a positive effect on corporate financial performance. McDuffie
[38] used a 1989–1990 survey of 62 international automotive
assembly plants to test whether HR bundles affected plant
productivity and quality. HR bundles were defined as
interrelated and internally consistent HR practices. These HR
bundles were hypothesized to create multiple, mutually
reinforcing conditions that support employee motivation and
skill acquisition. He also hypothesized that an HR bundle or
system must be integrated with the firm's overall business
strategy to be effective (i.e., the contingency perspective).
McDuffie found support for the effect of HR bundles on plant
productivity and quality. Furthermore, he found that flexible
production plants consistently outperformed mass production
plants.
2.4 Requirement of a Good Motivational System
Human capital professionals and expert researchers have
investigated that there are several kind of motivational systems
that forward thinking multinational organizations can put in
place to encourage their personnel to put in their best on the
job, hence, resulting to higher employee productivity and
inorderwords better organizational performance. Although
incentives and benefits are two types of additional
compensation schemes that employees may receive according
to this current study. They are also believed in many quarters
as the effective and efficient requirement needed to motivate
workers to give out their best possible for organizational goal
attainment. Furthermore they opine that this two category of
compensation have a different emphasis that is to say, from
basic pay an employee receives [6, 39].
As a result of workers effectiveness which has led to increased
productivity, concerns are bound about how best to reward
such workers who have contributed immensely or above
average performance to organizational outcomes and
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enhancing cost reduction through unit output. An incentive is
an additional compensation given to employees for additional
performance in an organization. A benefit on the other hand is
an additional compensation that is paid to an employee as an
organizational member.
Incentives can be divided into two categories namely;
financial and non-financial incentives. On-financial incentives
as the name implies are non-monetary, they include such
things as recognition of achievement, feeling of participation
and pride in superior performance, which tend to stimulate
good performance. Financial incentives on the other hand, are
monetary and there are two types-direct and indirect
incentives. Indirect incentives includes such things as
equitable pay structure, merit increase ,pension and profit
sharing, and other benefits that are financial in nature but are
not directly dependent upon the contribution of an individual
or group [6, 39]. Direct financial incentives provide an
opportunity for higher pay through increased productivity or
effectiveness. They are based upon the concept of plus
performance.
Authors such as [39] have enumerated some of the important
elements that may be considered for a successful wage
incentive system;
• There must be two-way communication between
employees of their association and management; and
participation of the employees representatives in the
development, installation and administration of the
incentive system.
• The wage system should be simple and easily
understood by employees so that they can easily
calculate their wage.
• Workers on incentive system should earn about 20 to
30 percent more than the base rates, and preferably in
direct proportion to the individual’s efforts or
increase in output above standard.
• Already accepted and established standard and rates
should be guaranteed against changes, except when
there are substantial changes in methods, materials
and equipment.
• the incentive system should be tied as much as
possible to performance
2.5 Types of Incentives Schemes
There are three types of incentive schemes
• individual system (price rate)
• group system (group bonus)
• organizational system (profit sharing)
2.5.1 Individual incentive plan
Individual incentive scheme as the name implies are incentives
made on an individual basis, relating individual effort to
individual reward. Basically, the individual is paid in direct
proportion to what he produces. It should, however, be noted
that individual incentive does not entail only financial
incentive. It could also be non-financial, depending on the
Vol. 2, No. 3, June 2012
individual desire. Similar view was expressed by [6, 40] when
they pointed out that individual incentive systems may have to
be tailored to individual desires. Thus if a worker wants
additional time off instead of additional take-home pay, the
incentive system may have to provide that option to be
effective. In all instances however the purpose of the
individual incentives is to encourage the employee to produce
work of the quantity above that which is specified. There are a
wide variety of individual incentive schemes. These schemes
include; the piece rate, the standard hour plan, bonus system,
suggestions scheme, and merit rating.
2.5.1.1 Problems with individual incentives
There are a number of problems associated with individual
incentives. A list of these problems according to [6, 40] is;
• Problems of keeping the system current since changes
in inflation may require changes in bonus payment to
compensate for inflation.
• Employee compensation for incentives may produce
undesirable results. E.g. producing unhealthy rivalry
among employees.
• The much needed climate of trust and co-operation
between the employer and employee required to
make the individual system work may not exist in the
organization.
• an incentive system can lead to over-emphasis on one
dimension of a job; if you are not careful, you get
more of what you emphasize than you wanted.eg an
employee in a factory who receives incentives based
on the number of units produced may turn out large
number of products, but of lower quality.
• Unions may resist individual incentive systems
because unions are built on security, seniority and
group solidarity instead of the total productivity of an
individual.
• Finally incentive systems may favor only the highly
motivated, competent workers and actually degree an
average workers earning.
2.5.2 Group Incentive Scheme
Group incentive systems have been developed to overcome the
numerous challenges with the individual incentive plans.Goup
plan is designed to provide rewards to all workers in a unit
[40]. The group incentive system is most appropriate under the
following conditions;
• When it is difficult to accurately measure individual
performance or contribution.
• where a job cannot be performed by an individual but
by a group
• when group work is to be encouraged rather than
individual performance
• There is a community of interest among the members
of the group
2.6 Employees Motivation on Organizational Performance
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According to Rosenbloom [41], employee benefits constitute a
major part of almost any individual’s financial and economic
security. Such benefits have gone from being considered
‘fringe’ to the point where they may constitute about 40% of
an employee’s compensation, and the plans under which they
are provided are a major concern of employers.
The American chambers of commerce survey of employee
benefits [41] includes the following;
• Employers share of legally required payments
• Employer’s share of life insurance and death benefit
payments
• Payment for time not worked (paid rest periods, sick
leave,vacations,holidays,parental leave)
• Employer’s share of medically related benefit
payments
• Miscellaneous benefits payments (employee
discounts, severance pay, educational expenditure
and child care.
• Paid time off is still the most common benefit for
employees in the US private organizations.
According to the bureau of labor statistics, us
department of labour,paid vacations were available to
80% of employees and paid holidays to 77% of
employees in private industry during the year
2000.The data comes from the national compensation
survey (NCS),which provides comprehensive
measures of occupational earnings, compensation
cost trends and details of benefits provision [42].
Some 52% of employees in private industry participated in
medical care plan premiums were fully paid by the employer
for 32% of those with family coverage. The majority of
medical plan participants were required to contribute a flat
monthly amount, averaging USD54.40 from single coverage
and USD179.75 from family coverage.
• Around 48% were covered by retirement benefits of
at least one type: a defined plan (19%); a defined
contribution plan (36%).Both types covered
approximately 7 percent.
• life insurance was available to cover half of all
employees of private industry
• Short term disability benefits were available to 34%
of employees, while long term disability benefits
were only available to 26%.
• non-production bonuses were offered to 48% of
employees
• Work-related educational assistance (38%) severance
(20%)
• Job-related travel accident insurance (15%)
2.6.1 Worker Characteristics
According to Human Resource Brief [43],a survey was carried
out to show the characteristics of various workers. This
analysis looked at three categories of employees; 50% of
clerical and sales employees and 39% of blue-collar and
Vol. 2, No. 3, June 2012
services employees. Work-related educational assistance was
available to 62% of professional, technical and related
workers, 37% of clerical and sales workers and 28% of blue-
collar and service workers.
Full-time employees were far more likely to have benefits than
were part-time employees: 55% of full-time employees were
covered by retirement benefits compared with 18% of part-
time employees. The disparity in healthcare benefits was even
greater 61% of full time employees were covered by medical
care plans compared with 13% of part time workers.
2.6.2 Establishment Characteristics
According to Human Resource Brief [43, a survey was carried
out to show the characteristics of various establishment. As an
example, 65% of workers in establishments with 100
employees or more (medium and large) were covered by
retirement benefits compared with 33% or employees in small
establishments (less than 100 workers);86% of employees in
medium and large firms had paid holiday benefits compared
with 70% small firms.
Benefits costs also vary by industry, retirement benefits
covered 57% of workers in good-producing industries
compared with 45% in service-producing industries. Long-
term disability coverage was also more common in goods-
producing industries (31%) compared with 24% of employees
in service-producing industries. Short-term disability benefits
covered 45% of employees in good-producing industries and
30% of those in service-producing industries [43].
2.7 Pay and Performance
Many commentators severally criticized the apparently chaotic
and disorganized nature of pay management between the
1950s and 1980s.In recent years there has been an attempt to
remedy the situation. The fashion has been towards the
development of performance-related pay schemes that are
related to assessments of performance through individual
employee appraisal. Wolf [44] sums up a common view that
Pay for Performance is the only grail of modern compensation,
but it is easier said than done. He opined that the main
problem is defining performance properly, so the organization
pays for results and not for effort. Once over the hurdle there
remains the large impediment of finding enough money to
make the reward from top performance meaningful. Pay is a
sensitive issue, most employers have been cautious with the
introduction of performance related pay. Often it is applied to
senior managers first, and then extended to other employees.
Usually it has been an add-on to normal pay.
2.7.1 Relationship with Performance
It was however put forward by [45,44] that there is no
correlation between company performance and performance
related pay schemes as used by both high and low performing
organizations [46]. He further highlighted that Performance
related pay benefits about 20 percent of employees at the
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Vol. 2, No. 3, June 2012
expense of 80 percent, concluding that it rather de-motivates Marketing 26 26
far more than it encourages. Human resource 25 25
Supply chain 17 17
Engineering 10 10
2.7.2 Performance Related Pay and Flexibility Sales 12 12
Total 100 100%
Management experts and academic researchers have found
that Performance related pay increases the likelihood of For the purpose of this study, a survey descriptive method was
flexibility and management power. However also the opined adopted through the use of quantitative research technique.
that it has created more hostility and ill-feelings from many The questionnaires were administered to the personnel of
union members, as collective bargaining is sidestepped. Cadbury Nig Plc at the corporate headquarters at Ikeja- Lagos
Enchantingly, however, performance related pay schemes State. The reliability of the study was confirmed by carrying
have largely been focused on relatively permanent, well-paid out a test-retest. This was done with the use of another 25
non-manual employees, rather than peripheral often lower- sample as retest which is a part of the total population. The
paid and lesser-skilled workers [45] response rate of completed questions returned is 87% meaning
that 13% of the questions were not returned by the
2.7.3 Criticism of Performance Related Pay System respondents. This percentage is high enough for the validity of
this quantitative study. The questionnaire questions were
There is a widespread opinion among senior managers that properly verified by experts in the field of management who
Performance Related Pay must be a good thing, but the are professors in the faculty of management with experience in
evidence for its effectiveness is not overwhelming. Indeed, the human resource practices in the industry. These experts who
search for a positive relationship between Performance verified the suitability of the survey instruments were carefully
Related Pay and good performance has been described as selected from four reputable Universities in the south west
being like looking for the Holy Grail [45,44,46].As one region of Nigeria.
variable in complex situation, it is not surprising that a
connection cannot be proven.
In order to properly analyze the responses obtained from the
3.0 METHODOLOGY OF THE RESEARCH participants of this survey, the researcher chose to make use of
simple percentages distribution method and the presentation
3.1 Research questions and interpretation of data collected are shown in Table 2.
Furthermore, the data collected from members of staff of
• What is employee turnover?
Cadbury Nig Plc who returned their completed questionnaires
• How do u determine those factors that stimulate
are tabulated in a frequency distribution form and the
potential employees to apply for jobs?
corresponding percentage equivalent are calculated and
• Is employee motivational package relevant in recorded respectively. For the researcher to test the hypothesis
management organization? earlier formulated, the Pearson’s product moment correlation
• To what extent does employee motivation attract and coefficient was also used.
retain employees?
• Does employee motivation contribute to workers Table 2 Demography of Respondents
performance?
S/N Feature code frequency %age
3.2 Hypothesis A
Male 1 68 78.2
Female 2 19 21.8
Ho: There is no significant relationship between employee Total 74 100
motivation and organizational performance B Age
H1: There is significant relationship between employee’s 20-30 years 1 34 39.1
motivation and organizational performance. 31-40 years 2 37 42.5
41-above 3 16 18.4
Total 87 100
3.3 Population of the study
C Education
The population of the study was a sizeable number of Bachelors 1 69 79.3
employees of Cadbury Nig Plc.In this study the researcher Masters 2 10 11.5
only focused on, six key departments and is used for the Others 3 8 9.2
Total 87 100
purpose of this investigation. They selected departments are
mentioned in Table 1 below and the number of participants D Position
and percentage of participation presented thus; Top management 3 5 5.7
Supervisory 2 21 24.1
Table 1 Sample Population Lower cadre 1 61 70.2
Department Respondents %age Total 87 100
Finance and admin 10 10

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Vol. 2, No. 3, June 2012
employee attitude to
E Length of service work in Cadbury
5 years below 1 30 34.5 6 Cadbury reward 10 65 7 5 -
5-10 years 2 39 44.8 system fosters (11.5 (74.7) (8.1) (5.7)
11-15 years 3 12 13.8 effective )
16 years-above 4 6 6.9 relationship
Total 87 100 between workers
and management
F Marital status 7 I can boast of loan - 87 - - -
Single 1 35 40.2 facilities of any kind (100)
in Cadbury
Married 2 52 59.8
8 Cadbury pays - 87 - - -
Separated 3 - -
salaries to workers (100)
Divorced 4 - -
promptly
Total 87 100
Source: Self administered questionnaire

From the analysis of the above table 2, reveals that 78.2% of From Table 3 above it was observed that 5.1% of the total
the total respondents were male while 21.8% of the respondents strongly agree with the notion, 20.7% agree,
respondents were female. The table also reveals that 39.1% of 11.5% were undecided, 8.1% of the respondents disagree
the total respondents fall within the age bracket of 20-30 yrs, while 4.6% of the respondents strongly disagree. Thus, from
42.5% within 31-40 yrs while 18.4% within 41 yrs above. the above result, it can be adduced that multinational
The above table also reveals that 79.3% of the total manufacturing firms attract and retain some of the best hands
respondents are post secondary degree holders such as BSc, in the industry in Nigeria.
HND, also 11.5% of them are MSc/MBA graduates while From the table, it becomes quite obvious that the salary
9.2% hold professional qualifications like ICAN, NIMN. Also received by the employees of Cadbury Plc cannot be
5.7% of the respondents are in top mgt positions, 24.1% in compared to the service they render 9.25% strongly agree that
supervisory positions while 70.2% are in lower level cadre of their salary is commensurate with the work they do while 23%
the company. agree to this notion 16.1% of the total respondents are
The population in the table shows that 34.5% of the undecided on this notion. On the contrary, a great majority of
respondents have spent below 5 years in service, 44.8% have the employees (46%) disagree with the notion while 5.7%
spent between 5-10 years in service, and 13.8% have spent 11- strongly disagree.
15 years while 6.9% 11-15 years, from the observation also When asked if monetary incentives are used to reward good
59.8% are married while 40.2% are not married. performance, 17.2% strongly agree to this, 71.3% agree, while
11.5% do not agree with the notion. Thus a total of 88.5% of
4.0 Presentation of analysis of data the entire respondents agree with the notion that monetary
incentives can be used to reward good performance. However,
The respondents were required to answer some questions that the table shows that there is a small fraction (11.5%) of the
are meant to show relationship between the level of motivation respondents who are of the opinion that non-monetary
received by the respondents and the productivity level of the incentives can equally be used to reward good performance.
organization. The response given by the respondents are
shown in Table 3 below. Table 4 Measurement of Employee Performance
S Statement SA A (%) UD (%) D SD
Table 3 Measurement of Motivation Factors / (%) (%) (%)
S/ Statement SA A UD (%) D (%) SD N
N (%) (%) (%) 1 My supervisor 15 62 7 3 -
1 There are notable 48 18 10 7 4 always (17.2) (71.3) (8.1) (3.4)
factors that made (55.1 (20.7) (8.1) (4.6) commend the
you apply for job in ) (11.5) quality of my
this organization output
2 Your salary 8 20 14 40 5 2 I turnout the 24 47 8 5 3
compared to the (9.2) (23.0) (46.0) required level (27.6) (54.0) (9.2) (5.7) (3.5)
work that you do in (16.1) (5.7) of output
Cadbury is 3 I am able to 14 43 15 11 4
satisfying work with (16.1) (49.4) (17.3) (12. (4.6)
3 Monetary incentives 15 62 - 10 - little or no 6)
are used in Cadbury (17.2 (71.3) (11.5) supervision
to reward good ) 4 When am 20 63 5 - -
performance commended I (23.0) (71.3) (5.7)
4 Cadbury gives the - 75 3 9 - am able to put
13th month salary to (86.2) (3.4) (10.4) in more effort
workers into my work
5 There is a 25 43 10 6 3 5 Criticism serve 18 52 7 10 -
relationship (28.7 (49.4) (6.9) as a set back to (20.7) (71.3) (8.0) (11.
between incentive ) (11.5) (3.5) my work 5)
system and ability

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Vol. 2, No. 3, June 2012
6 Given the right 38 49 - - -
tools and (43.7) (56.3)
materials, as
well as the
right
compensation,
I work at my
utmost ability
Source: Self administered questionnaire

The Table 4 above shows that majority of the respondents are
commended when their output is of good quality, 17.2% of the
respondents strongly agree with this assertion, 71.3% agree,
8.1% are undecided while 3.4% of the total respondents
disagree with the assertion. In summary, 88.5% of the
respondents agree their supervisors commend the quality of
their output.
From the above analysis, it is obvious that majority of the
respondents produce up to the required level of output
allocated to them, i.e. they attain their own quota of
production.
A good number of respondents attest to the fact that they are
able to work with little or no supervision, 16.1% of the
respondents strongly agree to this while 49.4% agree to this
notion, 17.3% of the respondents were undecided, 12.6%
disagree to this while a small proportion of the respondents
4.6% strongly disagree to the idea of working without
supervision.
A great majority of the respondents 94.3% are in support of
the notion that commendation encourages them to put in more
efforts in their work, while 5.7% are undecided.
The above analysis shows that employees do not like
criticisms.20.7% of total respondents strongly agree that
criticisms act as a set back to their working ability, 59.8%
agree, 8.0% are undecided while 11.5% of the respondents
disagree with the notion.
The above table shows that the respondents are of the opinion
that with the right tools, materials and compensation, they are
able to put in their utmost ability in their respective
assignments.
4.1 Test of Hypothesis
Having examined the social economic background of the
sample population, we shall now proceed to test the hypothesis
formulated earlier in the study. This is part of the measure
needed to provide empirical support for this study.
4.2 Hypothesis
= 0.4
4.3 Interpretation of Result
It is clear from the above result that there is a positive
correlation between motivation and employee productivity vis-
à-vis organizational performance. An increase in employee
productivity will increase organizational performance
tremendously. The above analysis shows that there is a
significant relationship between the independent variable
(motivation) and the dependent variable (employee
productivity).The underlining motion here is that once there is
a significant increase in the level of employee motivation,
there is bound to be a great increase in organizational
performance[ 46]. This assertion is consistent with the
findings of [46] in their current study.
5.0 DECISION: Thus, from the analysis of findings and the
discussion presented therewith, the null hypothesis (Ho) is
rejected while the alternative hypothesis (H1) is accepted. This
implies that there is a significant relationship between
incentive system and employee motivation in Cadbury Nigeria
Plc. The implication of this is that there is an adequate
provision of motivation by Cadbury Nigeria Plc and
improvement in employee productivity and, a positive
correlation between employee productivity. Senior managers
in both manufacturing companies whether multinational or
domestic companies are however advised to adapt continuous
improvement in motivational programs as a core ingredient for
enhanced employee productivity and organizational
performance [46].
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AUTHORS PROFILE
M.A. Ajagbe (corresponding author) has an MBA in marketing management
from Ambrose Ali University Ekpoma, Nigeria. He worked as assistant sales
manager, regional sales manager and area sales manager with Dansa Foods
Vol. 2, No. 3, June 2012
Ltd. (Dangote Grp Nig.), Danico Foods Nig. Ltd. and Fareast Mercantile
Company Nig. Ltd. respectively. He is currently a Doctoral Degree Student
with Universiti Teknologi Malaysia. His research interest is in Financing
Technology Entrepreneurs through Venture Capital. He has about 25
publications to his credit in reputable International Conferences and Journals
which cut across disciplines. He is an active member of these professional
bodies; Associate Member, National Institute of Marketing of Nigeria,
Associate Member, Nigerian Institute of Management, and British Council
Management Express
Forum, Nigeria. Ajagbe is also a research assistant with K-Economy, Integrity
Research Alliance and Innovation and Commercialization Centre (UTM).
Award; Best participant and Contributor, Business Strategy Building
Workshop (Dangote Group Nigeria) 2006.International Doctoral Fellowship
Award (UTM) 2011-Date (ajagbetun@yahoo.com).
O. Solomon (principal author) is currently a Masters in Management
Technology Student at Universiti Teknologi Malaysia. His current Research
Interest is on E-Commerce in Nigeria (solomon467@yahoo.com).
Zohreh. B. T. Mehdi, studied BSc Pure Mathematics and is currently a
Masters degree student at Universiti Teknologi Malaysia.Her area of research
interest is in E-Service quality and customer satisfaction and loyalty.
(zohreh901@gmail.com)
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